• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 4 days "What’s In Store For Europe In 2023?" By the CIA (aka RFE/RL as a ruse to deceive readers)
  • 2 days Even Shell Agrees with Climate Change!
  • 8 days America should go after China but it should be done in a wise way.
  • 4 days How Far Have We Really Gotten With Alternative Energy
  • 5 days The European Union is exceptional in its political divide. Examples are apparent in Hungary, Slovakia, Sweden, Netherlands, Belarus, Ireland, etc.
  • 4 days World could get rid of Putin and Russia but nobody is bold enough
  • 7 days Oil Stocks, Market Direction, Bitcoin, Minerals, Gold, Silver - Technical Trading <--- Chris Vermeulen & Gareth Soloway weigh in
Oil Majors Dive Into Deepwater Projects Despite Tight Budgets

Oil Majors Dive Into Deepwater Projects Despite Tight Budgets

Despite tightened budgets, frontier drilling…

Oil Markets Await the Next OPEC+ Announcement

Oil Markets Await the Next OPEC+ Announcement

Oil prices remained rangebound in…

A Strong Dollar Is Weighing On Precious Metals

Gold has started to trade within a range formed by swing lows and highs. A break above either range will clear up the overall direction. Without a “big picture” view, the overall direction remains unclear.

According to a recent article, at least three gold analysts have a more bearish opinion of gold for the longer term. The analysts include James Steel, Chief Precious Metals Analyst at HSBC Securities, and Suki Cooper, Executive Director of Precious Metals Research Standard Chartered. There’s also Rhona O’Connell, head of Europe and Asian market analysis at StoneX Financial Ltd. Even with an uncertain technical analysis, the group has pointed to a few factors most likely to stop gold’s bull run. The first being a strong dollar. The second is the Fed’s recent belt-tightening.

That said, gold tends to stay strong in both deflationary and stagflationary markets. Rising interest rates signify deflationary actions designed to put the brakes on price increases. However, many remain concerned that the US economy could tip into stagflation. This is a condition typified by slowed economic growth, rising prices, and higher unemployment. Were this to happen, precious metals prices will fluctuate greatly.

Silver, by way of comparison, shares the same outlook as gold. However, the price of silver looks weaker with each prior high it takes out. As sell orders are filled, buyer strength gets depleted. Still, silver has room to rise in the short term before it reaches the major supply zone seen on HTFs. HTFs, in this case, stands for “high time frame.” You can see a clear example by looking at the chart on a daily, weekly, and monthly scale.

Meanwhile, platinum and palladium prices are making their own moves.

Precious Metals Prices: Platinum and Palladium

In the case of platinum, prices have begun to shift upwards in shorter time frames. It’s as if they’re targeting newly-introduced supply zones. The introduction of supply basically resulted in newly-formed bearish “order blocks.” Designed to create inefficiency in price or, this can contribute to stronger moves. Prices begin to correct on a small scale as each weak high gets taken out in anticipation of a “mini-rally” into bearish ranges. That said, from a technical perspective, platinum has a similar outlook to gold and silver.

Palladium prices appear weaker overall. Certainly weaker than platinum. The metal’s failure to form any swing highs has caused bias to the downside. Weak lows need sweeping for the trend to resume. In the meantime, short-term rallies will serve as entries for short-sellers as prices continue to form lower highs. Industrial buyers will of course implement a different strategy.

By AG Metal Miner

ADVERTISEMENT

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News